South-East European PV Market Review

EnergyTechnical ArticlesSouth-East European INDUSTRIAL Мarket - issue 2/2011

South-East European PV Market Review

PV markets have never performed so well in their entire history. While the awareness about the PV’s capabilities grows in the public opinion, it now appears on the energy map of several countries. The total of newly installed capacity added in 2010 represents in average the electricity production of two large coal-fired power plants. In several countries, grid parity for residential systems is reachable in the coming years. In some specific cases in countries or regions with very high electricity prices, PV could already become competitive soon with net-metering only. Adequate support policies that have been driving the markets so far must continue and be further encouraged. The PV Industry also supports well-designed support schemes that limit the cost of FiT for electricity consumers, while ensuring the development of the markets and industry. In 2010, Europe alone added between 11.6 and 13.3 GW of new PV installed capacities. Even though 12.5 GW seems to be a good assumption at the moment, it will have to be refined with updated information during the first months of 2011. The photovoltaic markets expanded extensively in the last year were Germany, Spain and Italy. South-East European countries are due to be the next fast-growing markets. The interest in renewable energy and especially PV has been steadily growing for a number of years in the Balkan region, which will continue to develop, and present opportunities for local and international businesses.

PV market in Croatia
Annual irradiation: 1300-1900 kWh/m2
Electricity generation: 1020-1370 kWh/kWp
Electricity production: 14700 GWh
Installed PV systems: 0,5 MWp

Slow feed in implementation led to slow start of the market in Croatia and fall behind the 5,8% target for energy produced from RE in overall production. Since introduction of the support scheme only 8 individual small scale projects were grid connected with total of 0,07 MWp connected systems; total installed systems accumulate to 0,5 MWp. Main PV projects in Croatia are 21 kW Grid-connected PV System in Solvis Varazdin, 22 kW Grid-connected Roof integrated PV System on Faculty of civil engineering; 270 kW Grid-connected PV System at Highway sound barrier to Zagreb-Rijeka Highway; Standalone PV System in Kijevo Municipality, etc. Currently 90 projects are planned with total installed power of 52 MWp. Increase of the PV feed in cap to 45 MW is expected within this year.

Future of the PV industry in Croatia
Ministry of Economy is expected to issue new supporting incentives for PV within this year with the intention to allow for more practical use of PV systems. Among other the measures are expected to influence:
•simplified procedure for small scale systems
•Increase from 12 to 15 years for the feed in contract
•removal of 1 MWp cap on the cummulative PV installed power
•necessary changes in urban development acts in order to simplyfy overall procedure
•Increase in the price of currently subsidised electricity expected to give further boost to the industry

Photovoltaics in Slovenia
Slovenia characterizes with good solar irradiation - average yearly horizontal irradiation is 1012 kWh/kWp. However, there are some barriers in front of the PV market development. Among them the specialists point out unstable investment environment due to unpredictable fit policy (20% decline based on 2009 instead of officially agreed 7% yearly decline). Also the stronger focus on other renewable energy sources - only 4% of all subventions for RES are spent on PV. Another obstacle is out of date environmental policies dating to 1984, which often block the new PV installations in municipalities and unpredicted legislative changes, as sudden requirement of building permits for small-scale PV power plants.
One of the latest PV projects was 1 MW rooftop PV plant in Tam, Koroska region - the northern part of Slovenia, implemented by Bisol, together with Intereuropa Ltd. Co., a supplier of complete logistic services in Slovenia and South-Eastern Europe, and Volksbank International AG BISOL (Prebold, Slovenia). The PV system consists of 4416 BISOL polycrystalline modules. With annual production of 1.1 GWh, the system will provide electricity to 275 households in the vicinity and will save more than 660 tons of carbon dioxide emissions each year.

The Greek solar PV market is ready for take-off, following Spain and Italy as the next interesting Mediterranean top spot. Greece is set to become one of the global top ten biggest PV markets. This optimism is driven by the generous feed-in tariff in combination with a sunny climate. The Greek PV industry is developing rapidly. Hundreds of PV companies are already active in Greece, including major international players. New manufacturing facilities are being built, offering highly persuasive arguments in favor of continued political support. Public and media support for solar PV is strong, especially since the introduction of the rooftop PV program in June 2009.

The Photovoltaic Market in Bulgaria
The development of solar industry in Bulgaria finds expression mainly in construction of ground-based photovoltaic parks that must be integrated with the national electric grid. Another aspect of solar power energy generation in Bulgaria is the construction of solar roof installations. Although it is thought to be very perspective from market point of view, it is not developed due to regulatory implications.
According to the report of the Minister of Economy, Energy and Tourism, the peak of RES energy production was reached in 2010 - it amounts to 5.509 GWh and owes to the increased production of all RES power plants. For three years of active construction of PV power stations (which started in 2007), in 2010 the total installed capacity reached 21.4 MW. These power plants are reported to have achieved the greatest increase in terms of capacity in 2010. It is approximately four times bigger than the capacity observed in the previous year. According to the data of the Ministry of Economy, Energy and Tourism the PV capacities installed in Bulgaria by May 2011 equals 28 MW. Some of them are constructed on recultivated terrains, and others - on former agricultural lands. One MW of installed capacity needs on the average about 25 dK, i.e. the total built-up area of all the solar parks in Bulgaria today is about 700 dK or 70 hectares.

Current Status in Macedonia
Solar Thermal
Total installed capacity in operation in solar thermal systems (flat plate and evacuated tube collectors) 13,5MW or 6,6 kW per 1000 inhabitants. Mainly SWH, few examples of combi systems and pool heating.

Solar Power
Total installed PV power 359,64 kW - planned annual production 541 MWh.
•SIETO 1 - 12.05.2009 - 10,2 kW
•PETRO M - 14.06.2010 - 49,72 kW
•GEOLINK GROUP - 15.06.2010 - 49,72 kW
•MAVIS - 10.12.2010 - 250 kW

Albania’s solar radiation is more than 1500 kWh/m2/year, within a range of 1185 to 1690kWh/m2/year. It has 240-260 solar days. The installed capacity of solar panels in Albania is about 9 MW or 12.000 m2, 80% of which are situated in the western part of the country (Adriatic and Ionian coast). Investments are mainly private - 20% were realized through international donations.
Among the regions with pronounced use of solar thermal, due to high annual radiations, are Shkodra, Durres, Fier, Vlora, Saranda. UNDP/UNEP/GEF/ALBANIA are promoting SWH market to facilitate the installation of 90.000 m2 in 5 years. The total budget is USD 2,750,000. There is no feed-in tariff for solar PV, yet.

Solar Status in Montenegro
Montenegro has a high potential for solar energy application. The number of sunny hours for most part of Montenegro is above 2000 h/year, and more than 2500 h/year on the coast. Podgorica has annual sun radiation of 1602 kWh/m2. Specific heat from solar-thermal collectors is: Households ~700 kWh/m2 and Tourism ~900 kWh/m2.

Solar Status Bosnia and

With 1240 kWh/m2 at North to 1600 kWh/m2 at South, Bosnia and Herzegovina has favourable conditions for solar applications (2500-2700 solar hours). The technical potential is assessed to 685 PJ or 6,2 times larger than the final energy consumption in 2000. First PV system of 3.9 kW installed by the company ITM Controls in Mostar. In Bosnia and Herzegovina there is no feed-in tariff for PV and no incentives for solar thermal systems. The legislation is in phase of preparation.

Solar business in Romania
Current status of PV in Romania

Installed PV systems qualified by ANRE for GC: Renovatio Trading: 0,99 MW - Giurgiu.
On-going projects:
•137,94 MW have obtain until January 2011 approval for connecting to the Electrical Grid (ATR) - mainly Projects of 1-4 MW but also a 4x8 MW project at Gataia and a project of 48 MW at Segarcea.
•300-400 MW on-going projects not yet visible - Site Acq &Permits preparing for the Law approval by C.E. - only Renovatio have projects of 50 MW near the Danube.
•Public Authorities are financed with 98 % of the investment for building E-RES; usually they build 50 KW - 2 MW; there are expected some tenders on such projects in 2011.
Industrial capacity:
•Renovatio Solar, part of Renovatio Group - at Satu-Mare
Ownership of land plots and buildings is fully permited to EU citizens or companies - they have unlimited access to property and same rights as any other Romanian citizen or company. It’s also possible to use concession from Public Authorities by Public Tender - on 49 years period or less / this procedure will take some more time; price will be set in Eu/year/Ha or per sqm;  the usual value is around 200-1200 u/year/Ha with major variation if it is urban-rural or inside-outside constructible area (Intravilan-Extravilan).
Price of Ha in rural areas is starting from 1.000 Eu up to 2.500 Eu for compact surfaces in good position.

Data and analyses were extracted as originally presented at Business Forum "Solar Balkans 2011" (11 - 14 April, Sofia, Bulgaria) by Dr. Alexander Zachariou, President, HELAPCO, Greece; Mr. Jurica Greguric, Executive Director, Solvis, Croatia; Dr. Uros Merc, President & CEO, BISOL d.o.o., Slovenia; Mrs. Sanja Popovska-Vasilevska, Vice-president, Solar Macedonia (NGO); Mr. Silviu Dumitrescu, Partner & Technical Manager, Est Solar Engineering SRL; EPIA; Energy review magazine.